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Businesses often wish to publicise themselves, their services and their products by way of prize draws and competitions. However, in many cases businesses fall foul of the law and risk the wrong type of publicity
Businesses often wish to publicise themselves, their services and their products by way of prize draws and competitions. However, in many cases businesses fall foul of the law and risk the wrong type of publicity should legal proceedings be brought against them. Proper prior legal advice can prevent such problems. Prize draws A supplier/manufacturer may wish to increase its sales of a product by offering a prize draw. However, if to enter the draw a participant must either make a purchase or make a payment of any kind, it is likely such a promotion will be illegal, as in effect it will be treated as an unauthorised "lottery". Competitions If instead, products or services are publicised by way of a competition, the level of skill required of entrants and the specific conditions applicable should be scrutinised carefully before publication, as again there is the risk of such a competition being deemed to be an illegal lottery. Recent changes in the law have increased the risks for organisations wishing to use such promotions and anyone considering such methods of publicity should first have the terms checked by a lawyer. The Punishment? Failure to comply with the laws relating to promotions can result in a potential fine of up to £5,000 and/or imprisonment! The Answer Milne Moser offers a straightforward legal health check on such promotions. Simply send us the proposed text of your promotion and its terms, together with a cheque payable to Milne Moser for £94 (to cover the fixed fee of £80 plus VAT). You will then be contacted by a fully qualified solicitor who will advise you if the promotion is safe to run or whether modifications should be made. If required, at extra cost, we can assist further with advising in detail and supplying revised wording. In addition, for an agreed fee, personal presentations can be made by Milne Moser Solicitors to organisations on how to comply with the law on competitions and prize draws. Advice can also be given on the appropriate records to be kept as evidence to show that you have complied with the rules. Please contact Simon Rose at our Milnthorpe office. |
